India Lifts Major Rice Export Restrictions Ahead of Prospective Bumper Harvest

India has removed most of its export restrictions on rice as a good monsoon season is expected to increase crop yields. In 2022, India contributed significantly to global rice exports, but restrictions in 2023 reduced its exports by 20%, forcing buyers to turn to other countries.

India has lifted the majority of its rice export restrictions with immediate effect, in anticipation of a bounty from a favorable monsoon season that is set to boost crop yields. This decision comes as state granaries are brimming with stock.

Notably, India was a major player in the global rice market in 2022, accounting for over 40% of total exports with a record 22.2 million metric tons out of 55.4 million. Indian exports surpassed the combined shipments of the next four largest exporters: Thailand, Vietnam, Pakistan, and the United States.

The 2023 restrictions significantly impacted exports, cutting them by 20% and obliging Asian and African buyers to seek alternatives such as Thailand, Vietnam, Pakistan, and Myanmar. This shift pushed export prices in these countries to their highest levels in over 15 years.

(With inputs from agencies.)